HomeMy WebLinkAbout8419-93 Amending Ordinance #8318-92 Issuance of Revenue Bonds Waterworks Ii
ORDINANCE No. 8419-93
Passed by the Common Council of the City of South Bend, Indiana.
September 27, 1993
Attest: "" `' City Cic Clerk
IRENE K. GAMMON
Attest: _ e President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana_
September 28, 1993
City Clerk
IRENE K. GAMMON
Approved and signed by me o'Z� 1993
ded4- --6-04t4--- Mayor
4
ORDINANCE NO. 8'St/9-?3
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO.
8318-92 ENTITLED "AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING
THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS,
ADDITIONS AND IMPROVEMENTS TO THE MUNICIPAL
WATERWORKS OF THE CITY OF SOUTH BEND, INDIANA,
AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO PROVIDE
FOR THE COSTS THEREOF, AND AUTHORIZING THE COLLECTION,
SEGREGATION AND DISTRIBUTION OF THE REVENUES
OF SUCH WATERWORKS AND OTHER RELATED MATTERS"
STATEMENT OF PURPOSE AND INTENT:
The City of South Bend, Indiana ("City") , is the owner
of and operates an unencumbered waterworks system (the
"Waterworks") by and through its Board of Waterworks (the "Board")
furnishing the public water supply to the City and its inhabitants
pursuant to the provisions of IC 8-1. 5, as amended (the "Act") .
The Board, at a meeting on November 4, 1992, adopted Resolution No.
1992-10, by which the Board represented to the Common Council of
the City (the "Common Council") and the Common Council determined
that certain extensions, additions and improvements to the
Waterworks (the "Project") , are necessary in order to serve
adequately and protect and promote the public health, welfare and
property of the inhabitants of the City. The Common Council
subsequently adopted Ordinance No. 8318-92 on November 23, 1992
(the "Bond Ordinance") which Bond Ordinance authorized the issuance
of waterworks revenue bonds, payable solely out of the net revenues
of the Waterworks as defined therein, in an aggregate principal
amount not to exceed Five Million One Hundred Thousand and 00/100
Dollars ($5, 100, 000. 00) (the "Bonds") to pay the costs of
construction and completion of the Project, including all
incidental and authorized expenses relating thereto, including the
allocable portion of the costs of issuance such Bonds. On January
27, 1993, the City received a final order in Cause No. 39554 from
the Indiana Utility Regulatory Commission, authorizing the City to
issue the Bonds in an aggregate principal amount not to exceed Five
Million One Hundred Thousand and 00/100 Dollars ($5, 100, 000.00) and
requiring the City to comply with certain other requirements in
connection with the issuance of the Bonds.
Subsequent to the adoption of the Bond Ordinance, the
engineers employed by the City (the "Engineers") have finalized and
recommended the components of the Project to be completed using
proceeds of the Bonds and have prepared and filed preliminary
descriptions, specifications and estimates of such components with
the Board. Additionally, the Common Council, upon the
recommendation of Municipal Consultants, the financial advisor to
the City with respect to the Bonds (the "Financial Advisor") , has
f t
( F
determined that it is desirable to fund the debt service reserve
for the Bonds provided for in the Bond Ordinance from proceeds of
the Bonds. The Common Council desires to amend the Bond Ordinance
to provide with more specificity the terms of the Bonds and the
components of the Project to be financed with proceeds of the
Bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
Section 1. Amending Provisions. The Bond Ordinance is
amended by replacing the existing Sections 2, 4, 7, 9, 10, 14, 15
and 25 of the Bond Ordinance with the following:
Section 2 . Description of the Project. The
Project shall be constructed, installed, and equipped in
accordance with the plans provided by the Engineers and
the Department of Waterworks. The Project shall consist
of the following: acquisition and renovation and
remodeling of a building to accommodate relocation of the
main office of the Waterworks; improvements to the Edison
and Pinhook filtration plants, consisting of upgrading
the iron removing capabilities of such plants;
rehabilitation of existing reservoirs to include roof
replacement; repainting of two existing tanks; and the
construction and installation of five new wells
throughout the City
Section 4. The Bonds. In accordance with the
Act and for the purpose of providing funds with which to
pay the costs of the Project, together with authorized
expenses relating thereto, including the costs of
issuance of such bonds, the City shall issue and sell its
waterworks revenue bonds pursuant to the provisions of
the Act and this Ordinance, which bonds shall be payable
solely from the Waterworks Sinking Fund created
hereinbelow (the "Sinking Fund") to be provided from the
Net Revenues (herein defined as the gross revenues of the
Waterworks of the City remaining after the payment of the
reasonable expenses of operation, repair and maintenance)
of the Waterworks of the City.
The bonds authorized by this Ordinance shall
be designated as "City of South Bend, Indiana, Waterworks
Revenue Bonds of 1993" (the "Bonds") , shall be issued in
the principal amount not to exceed Five Million One
Hundred Thousand and 00/100 Dollars ($5, 100, 000. 00) ,
shall be issued in the denominations of Five Thousand and
00/100 Dollars ($5, 000. 00) and any integral multiple
thereof not exceeding the aggregate principal amount of
the Bonds maturing in any one year, shall be numbered
consecutively from 93R-1 upward, and shall bear interest
2
f i
4
at a rate or rates not exceeding eight percent (8%) .
(The exact rate or rates to be determined by bidding) .
Interest on the Bonds shall be payable semi-annually on
January 1 and July 1 of each year beginning on January
1, 1994 (each an "Interest Payment Date") , and such
interest shall be calculated on the basis of twelve (12)
thirty (30) -day months for a three hundred and sixty
(360) -day year. The Bonds shall mature serially on
January 1, in the years and in the principal amounts as
follows:
Principal Principal
Year Amount Year Amount
1995 210, 000 2003 340, 000
1996 220, 000 2004 370, 000
1997 235, 000 2005 395, 000
1998 250, 000 2006 425, 000
1999 265, 000 2007 460, 000
2000 280,000 2008 495, 000
2001 300, 000 2009 535, 000
2002 320, 000
The Bonds shall bear an original issue date
which shall be the first day of the month in which the
Bonds are delivered to the purchaser or purchasers
thereof, and each Bond shall also bear the date of its
authentication. Any Bond authenticated on or before
December 15, 1993 , shall pay interest from its original
issue date. Any Bond authenticated thereafter shall pay
interest from the Interest Payment Date next preceding
the date of authentication of such Bond to which interest
thereon has been paid or duly provided for, unless such
Bond is authenticated after the fifteenth (15th) day of
the month immediately preceding an Interest Payment Date
and on or before such Interest Payment Date, in which
case interest thereon shall be paid from such Interest
Payment Date.
Principal of and redemption premium, if any,
on the Bonds shall be payable at the office of the Paying
Agent, as defined and described herein. All payments of
interest on the Bonds shall be paid by check or draft
mailed or delivered one business day prior to such
payment date by the Paying Agent to the registered owner
thereof at the address as it appears on the registration
books kept by the Registrar, as defined and described
herein, as of the fifteenth (15th) day of the month
immediately preceding the Interest Payment Date or at
such other address as may be provided to the Paying Agent
in writing by such registered owner. All payments of the
Bonds shall be made in any coin or currency of the United
3
•
t �
•
States of America which, on the dates of such payments,
shall be legal tender for the payment of public and
private debts.
Section 7. Redemption of the Bonds.
(a) Optional Redemption. The Bonds
maturing on or after January 1, 2004, shall be
redeemable at the option of the City, in whole
or in part, on January 1, 2003, or at any time
thereafter, in inverse order of maturity, and
by lot within any such maturity or maturities
by the Registrar, at a redemption price
expressed as a percentage of the principal
amount of each Bond to be redeemed in
accordance with the following schedule, plus
accrued interest to the redemption date:
Redemption Period (Both Dates Inclusive) Redemption Price
January 1, 2003 through December 31, 2003 102%
January 1, 2004 through December 31, 2004 101%
January 1, 2005 and thereafter prior to maturity 100%
Official notice of such redemption shall be
mailed by the Registrar and Paying Agent by
certified or registered mail at least thirty
(30) days and not more than sixty (60) days
prior to the scheduled redemption date to each
of the registered owners of the Bonds called
for redemption (unless waived by any such
registered owner) at the address shown on the
registration books of the Registrar and Paying
Agent, or at such other address as is
furnished in writing by such registered owner
to the Registrar; provided, however, that
failure to give such notice by mailing, or any
defect therein, with respect to any Bond shall
not affect the validity of the proceedings for
the redemption of any other Bond. The notice
shall specify the redemption price, the date
and place of redemption, and the registration
numbers (and, in case of partial redemption,
the respective principal amounts). of the Bonds
called for redemption. The place of
redemption may be at the office of the
Registrar and Paying Agent or as otherwise
determined by the City. Interest on the Bonds
(or portions thereof) so called for redemption
shall cease to accrue on the redemption date
fixed-in such notice, if sufficient funds are
available at the place of redemption to pay
4
f 1
the redemption price on the redemption date
and when such Bonds (or portions thereof) are
presented for payment. Any Bond redeemed in
part may be exchanged for a Bond or Bonds of
the same maturity in authorized denominations
equal to the remaining principal amount
thereof. At the time of payment of the
principal of, premium, if any, and interest on
any Bonds called for redemption, such Bonds
shall be surrendered for cancellation.
In addition to the foregoing notice, the
City may also direct that further notice of
redemption of the Bonds be given, including
without limitation and at the option of the
City, notice described in paragraph (1) below
given by the Registrar and Paying Agent to the
parties described in paragraphs (2) and (3)
below. No defect in any such further notice
and no failure to give all or any portion of
any such further notice shall in any manner
defeat the effectiveness of any call for
redemption of Bonds so long as notice thereof
is given as prescribed above.
(1) If so directed by the
City, each further notice of
redemption given hereunder shall
contain the information required
above for an official notice of
redemption plus (i) the CUSIP
numbers of all Bonds being redeemed;
(ii) the date of issue of the Bonds
as originally issued; (iii) the rate
of interest borne by each Bond being
redeemed; (iv) the maturity date of
each Bond being redeemed; and
(v) any other descriptive
information needed to identify
accurately the Bonds being redeemed.
(2) If so directed by the
City, each further notice of
redemption shall be sent at least
thirty-five (35) days before the
redemption date by registered or
certified mail or overnight delivery
service to all registered securities
depositories then in the business of
holding substantial amounts of
obligations of types comprising the
Bonds (such depositories now being
5
( A
Depository Trust Company of New
York, New York, Midwest Securities
Trust Company of Chicago, Illinois,
Pacific Securities Depository Trust
Company of San Francisco,
California, and Philadelphia
Depository Trust Company of
Philadelphia, Pennsylvania) and to
one or more national information
services that disseminate notices of
redemption of obligations such as
the Bonds (such as Financial
Information, Inc. 's Financial Daily
Called Bond Service, Kenny
Information Service's Called Bond
Service, Moody's Municipal and
Government News Report, and
Standard & Poor's Called Bond
Record) .
(3) If so directed by the
City, each such further notice shall
be published one time in The Bond
Buyer of New York, New York, or, if
the Registrar believes such
publication is impractical or
unlikely to reach a substantial
number of the holders of the Bonds,
in some other financial newspaper or
journal which regularly carries
notices of redemption of other
obligations similar to the Bonds,
with any such publication to be made
at least thirty (30) days prior to
the date fixed for redemption.
Upon the payment of the redemption price
of the Bonds (or portions thereof) being
redeemed and, if so directed by the City, each
check or other transfer of funds issued for
such purpose shall bear the CUSIP number
identifying, by issue and maturity, the Bonds
(or portions thereof) being redeemed with the
proceeds of such check or other transfer.
(b) Mandatory Sinking Fund Redemption. At
the option of the successful bidder for the
Bonds, all or a portion of the Bonds may be
aggregated into one or more term bonds payable
from mandatory sinking fund redemption
payments (the "Term Bonds") required to be
made as set forth below. The Term Bonds shall
6
•
have a stated maturity or maturities on
January 1 of the years 1995 through 2009 as
determined by the successful bidder.
In the event that the successful bidder
opts to aggregate certain Bonds into Term
Bonds, such Term Bonds shall be subject to
mandatory sinking fund redemption prior to
maturity at a redemption price equal to 100%
of the principal amount thereof, plus accrued
interest to the redemption date, but without
premium, on January 1 of each year and in the
principal amount corresponding to and
consistent with the maturity schedule for the
Bonds set forth in Section 4 of this
Ordinance.
The Registrar and Paying Agent shall
credit against any mandatory sinking fund
requirement for a Term Bond of a particular
maturity, any Bonds of such maturity delivered
to the Registrar and Paying Agent for
cancellation or purchased for cancellation by
the Registrar and Paying Agent and cancelled
by the Registrar and Paying Agent and not
theretofore applied as a credit against any
mandatory sinking fund requirement. Each Bond
so delivered or purchased shall be credited by
the Registrar and Paying Agent at 100% of the
principal amount thereof against the mandatory
sinking fund requirements for the applicable
Term Bond in inverse order of mandatory
sinking fund redemption dates, and the
principal amount of such Term Bond to be
redeemed on such mandatory sinking fund
redemption dates by operation of the mandatory
sinking fund requirements shall be reduced
accordingly; provided, however, the Registrar
and Paying Agent shall only credit Bonds
against the mandatory sinking fund
requirements to the extent such Bonds are
received on or before 45 days preceding the
applicable mandatory sinking fund redemption
date.
Notice of any such mandatory sinking fund
redemption shall be given in the same manner
as notice of optional redemption is required
to be given pursuant to Section 7 of this
Ordinance.
7
•
1
In the event any of the Bonds are issued
as Term Bonds, the form of the Bond set forth
in Section 9 of this Ordinance shall be
modified accordingly.
Any reference to payment of principal on
the Bonds shall include payment of scheduled
mandatory sinking fund redemption payments
described in this Section 7 (b) .
Section 9. Form of the Bonds. The form and
tenor of the Bonds shall be substantially as set forth
in Appendix A, attached hereto and incorporated herein
as if set forth at this place (with all blanks to be
properly completed prior to the preparation of the
Bonds) .
Section 10. Sale of the Bonds. The Bonds
shall be sold at public sale. In no event shall the
Bonds be sold at a purchase price of less than ninety-
eight percent (98%) of the par value of the Bonds, plus
accrued interest thereon, if any, to the date of
delivery. The Bonds shall be offered and sold pursuant
to an Official Statement with respect to the Bonds (the
"Official Statement") , to be made available and
distributed in such manner, at such times, for such
periods and in such number of copies as may be required
pursuant to Rule 15c2-12 promulgated by the United States
Securities and Exchange Commission (the "Rule") and any
and all applicable rules and regulations of the Municipal
Securities Rulemaking Board. The Common Council hereby
authorizes the Board (a) on behalf of the City, to
designate the Official Statement a "Final Official
Statement" for purposes of the Rule, and (b) to enter
into such agreements or arrangements as may be necessary
or advisable in order to provide for the distribution of
a sufficient number of copies of the Official Statement
under the Rule; and (c) to employ the firm of Municipal
Consultants to serve the City as financial advisor with
respect to the Bonds and in connection with the
preparation of the Official Statement, all on such terms
as may be mutually acceptable to the parties.
The Bonds shall be sold at public sale in
accordance with Indiana law. Prior to the sale of the
Bonds, the Controller shall conduct the sale of the Bonds
by publication of a notice of intent to sell bonds once
each week for two weeks in the South Bend Tribune and the
Tri-County News, both published in the County of St.
Joseph, Indiana, and in the Indianapolis Commercial
published in the City of Indianapolis, Indiana, or such
other newspapers as may be required pursuant to the Act
8
•
and Indiana Code 5-1-11 and in such other publications,
if any, deemed appropriate in the discretion of the
Controller. The notice shall state that any person
interested in submitting a bid for the Bonds may furnish
in writing, at the address set forth in the notice, the
person's name, address and telephone number, and that any
such person may also furnish a telex number. The notice
must also state the time within which the name, address
and telephone number must be furnished, which must not
be less than seven (7) days after the last publication
of the notice. Each person so registered shall be
notified of the date and time bids will be received not
less than twenty-four (24) hours before the date and time
of sale. The notification shall be made by telephone at
the number furnished by the person, and also by telex if
the person furnishes a telex number.
The notice of intent to sell bonds shall state
further the purpose for which the Bonds are being issued,
the total amount, maturities, and denominations thereof,
the maximum rate of interest thereon and any limitations
as to the number of interest rates and the setting of
such rates, the terms and conditions upon which bids will
be received and the sale made, and such other information
as the Controller and the attorneys employed by the City
or by the Board shall deem necessary or advisable. Such
notice shall provide, among other things, that each bid
shall be accompanied by a certified or cashier's check
in the amount equal to one percent (1%) of the principal
amount of the Bonds to guarantee performance on the part
of the bidder, and that in the event the successful
bidder shall fail or refuse to accept delivery of and pay
for the Bonds as soon as the Bonds are ready for
delivery, or at the time fixed in the notice, then such
check and the proceeds thereof shall become the property
of the City and shall be considered as the City's
liquidated damages on account of such default.
All bids for the Bonds shall be sealed and
shall be presented to the Controller at the office of the
Controller. Bidders for the Bonds shall be required to
name the rate or rates of interest which the Bonds are
to bear, which rate or rates shall not exceed eight
percent (8%) . Bids specifying more than one interest
rate shall also specify the amount and maturities of the
Bonds bearing each rate. All Bonds maturing on the same
date shall bear the same interest rate. The Controller
shall award the Bonds to the best bidder who has
submitted a bid in accordance with the terms of this
Ordinance and the notice. The best bidder will be the
one who offers the lowest interest cost to the City, to
be determined by computing the total interest on all of
9
e
the Bonds from the date thereof to their respective
maturities and deducting therefrom the premium bid, if
any, or adding thereto the amount of any discount. No
bid for less than all of the Bonds or for less than
ninety-eight percent (98%) of the par value of the Bonds,
plus accrued interest to the date of delivery, shall be
considered. The City shall have the right to reject any
and all bids. In the event an acceptable bid is not
received on the date fixed in the notice, the Controller
shall be authorized to continue the sale from day to day
for a period of not to exceed thirty (30) days without
readvertisement, subject to the requirements of Indiana
law.
Prior to the delivery of the Bonds, the
Controller, subject to the direction of the Board,
(i) shall be authorized to investigate and to obtain
insurance, other forms of credit enhancement and/or
credit ratings on the Bonds, and (ii) shall obtain a
legal opinion as to the validity of the Bonds from
Baker & Daniels, South Bend, Indiana, bond counsel for
the City with respect to the Bonds, with such opinion to
be furnished to the purchaser or purchasers of the Bonds
at the expense of the City. The costs of obtaining any
such insurance, other credit enhancement and/or credit
ratings, together with bond counsel's fee in preparing
and delivering such opinion and in the performance of
related services in connection with the issuance, sale
and delivery of the Bonds, shall be considered as a part
of the costs of issuance of the Bonds and shall be paid
out of the proceeds of the sale of the Bonds.
Section 14. Disposition of Proceeds of the
Bonds; Waterworks Construction Account. The proceeds
from the sale of the Bonds shall be deposited and applied
as follows:
(a) The accrued interest and premium
received at the time of the delivery of the
Bonds, if any, shall be deposited in the Bond
and Interest Account, as defined and described
herein.
(b) A portion of the proceeds from the
sale of the Bonds will be deposited into the
Debt Service Reserve Account defined and
described hereinbelow, which amount shall, in
no event, exceed the Reserve Requirement
established for the Bonds in Section 15
hereinbelow.
10
•
•
(c) The remaining proceeds from the sale
of the Bonds shall be deposited in a bank or
banks which are legally qualified depositories
for the funds of the City, in a special
account or accounts to be designated as "City
of South Bend, Waterworks Construction
Account" (hereafter called the "Construction
Account") , and shall be in the custody and
control of the Board. Each of such special
accounts shall be deposited, secured, and held
or invested in accordance with the laws of the
State of Indiana relating to the depositing,
securing, and holding or investing of public
funds, including particularly applicable
provisions of Indiana Code 5-13-9, as amended.
Any interest or income derived from any such
investments shall become a part of the moneys
in the Fund or Account so invested. Amounts
in the Construction Account shall be expended
only for the purpose of paying the costs of
the Project herein authorized, together with
the incidental expenses incurred in connection
therewith and the costs of the issuance of the
Bonds. Any balance or balances remaining
unexpended in the Construction Account after
completion of the Project, which are not
required to meet unpaid obligations incurred
in connection with the construction,
installation, and equipping of the Project,
shall be used solely for one or more of the
purposes permitted under the provisions of
IC 5-1-13, as amended.
Section 15. Segregation and Application of
Revenues; Accounts of Waterworks. The income and
revenues of the Waterworks, together with the income and
revenues of all extensions, additions, improvements
thereto, and replacements thereof made pursuant to this
Ordinance, or subsequently, shall be set aside into
separate and special funds and accounts created and
established herein below, to be used and applied in the
maintenance and operation thereof, in establishing an
improvement fund, and payment of the principal of all
bonds which by their terms are payable from the Net
Revenues of the Waterworks, together with the interest
thereon.
(a) Revenue Fund. All income and
revenues of the Waterworks shall be paid into
the Revenue Fund hereby created and
11
established (the "Revenue Fund") , which fund
shall be maintained separate and apart from
all other bank accounts of the City.
(b) Operation and Maintenance Fund.
There shall be credited on the last day of
each calendar month a sufficient amount of the
revenues of the Waterworks so that the balance
in the Operation and Maintenance Fund hereby
created and established (the "Operation and
Maintenance Fund") shall be sufficient to pay
the expenses of operation, • repair and
maintenance for the then next succeeding two
calendar months. The moneys credited to the
Operation and Maintenance Fund shall be used
for the payment of the reasonable and proper
operation, repair and maintenance expenses of
the Waterworks on a day-to-day basis, but none
of the moneys in such Operation and
Maintenance Fund shall be used for
depreciation, replacements, improvements,
extensions or additions. Any balance in said
Operation and Maintenance Fund in excess of
the expected expenses of operation, repair and
maintenance for the next succeeding two
calendar months may be transferred to the
Sinking Fund if necessary to prevent a default
in the payment of principal of or interest on
the outstanding bonds of the Waterworks.
(c) Waterworks Sinking Fund. There
shall be set aside and deposited in the
Waterworks Sinking Fund hereby created and
established (the "Sinking Fund") for the
payment of the principal of and interest on
revenue bonds which by their terms are payable
from the Net Revenues of the Waterworks, and
for the payment of any fiscal agency charges
in connection with the payment of bonds and
interest, as available, and as hereinafter
provitled, a sufficient amount of the Net
Revenues of said Waterworks to meet the
requirements of the Bond and Interest Account
and of the Debt Service Reserve Account
described herein in said Sinking Fund. Such
payments shall continue until the balance in
the Bond and Interest Account, plus the
balance in the Debt Service Reserve Account
hereinafter described, equals the amount
needed to redeem all of the then outstanding
bonds.
12
(1) Bond and Interest Account.
There shall be transferred, on the
last day of each calendar month,
from the Revenue Fund and credited
to the Bond and Interest Account
hereby created and established (the
"Bond and Interest Account") an
amount of the Net Revenues equal to
the sum of one-sixth (1/6) of the
principal and one-twelfth (1/12) of
the interest on all then outstanding
bonds payable from Net Revenues on
the next succeeding principal and
interest payment dates, until the
amount so credited shall equal the
principal payable during the next
succeeding twelve (12) calendar
months and the interest payable
during the next succeeding six (6)
calendar months. There shall
similarly be credited to the account
any amount necessary to pay the bank
fiscal agency charges for paying
principal and interest on the bonds
as the same become payable. The
City shall, from the sums deposited
in the Sinking Fund and credited to
the Bond and Interest Account, remit
promptly to the bank fiscal agency
sufficient moneys to pay the
principal and interest on the due
dates thereof together with the
amount of bank fiscal agency
charges.
(2) Debt Service Reserve
Account. The City shall deposit, if
necessary, as a reserve for the
Bonds into the Debt Service Reserve
Account hereby created and
established (the "Debt Service
Reserve Account") revenues of the
Waterworks so that the amount when
coupled with the balance in the Debt
Service Reserve Account equals the
reserve requirement for the Bonds
(the "Reserve Requirement") . The
Reserve Requirement for the Bonds
shall be equal to the lesser of (i)
the maximum annual debt service on
the Bonds, or (ii) one hundred
twenty-five percent (125%) of the
13
average annual principal and
interest payable on the Bonds, or
(iii) ten percent (10%) of the
proceeds of the Bonds (plus a "minor
portion" thereof defined and
permitted pursuant to the Internal
Revenue Code of 1986 as amended and
as in effect on the date of delivery
of the Bonds (the "Code") ) . The
Debt Service Reserve Account shall
constitute the margin for safety and
as protection against default in the
payment of principal of and interest
on the Bonds and the moneys in the
Reserve Account shall be used to pay
current principal and interest on
the Bonds to the extent that moneys
in the Bond and Interest Account are
insufficient for that purpose. Any
deficiency in the balance maintained
in the Debt Service Reserve Account
shall be promptly made up from the
next available Net Revenues
remaining after credits into the
Bond and Interest Account. In the
event moneys in the Debt Service
Reserve Account are transferred to
the Bond and Interest Account to pay
principal and interest on the Bonds,
then such depletion of the balance
in the Debt Service Reserve Account
shall be made up from the next
available Net Revenues after the
credits into the Bond and Interest
Account hereinabove provided for.
Any moneys in the Debt Service
Reserve Account in excess of the
Reserve Requirement may be used for
the prepayment of installments of
principal on the then outstanding
Bonds which are then callable or
prepayable, or for the purchase of
outstanding Bonds or installments of
principal of the Bonds at a price
not exceeding par and accrued
interest, or may be transferred to
the Waterworks Improvement Fund as
provided below. However, in no
event shall moneys in excess of the
Reserve Requirement be held in the
Debt Service Reserve Account.
14
•
1 } t
•
(d) Waterworks Improvement Fund. After
meeting the requirements of the Operation and
Maintenance Fund and the Sinking Fund, any
excess revenues may be transferred or credited
to the Waterworks Improvement Fund hereby
created and established (the "Waterworks
Improvement Fund") , and said Fund shall be
used for improvements, replacements, additions
and extensions of the Waterworks. Moneys in
the Waterworks Improvement Fund shall be
transferred to the Sinking Fund if necessary
to prevent a default in the payment of
principal and interest on the then outstanding
bonds or, if necessary, to eliminate any
deficiencies in credits to or minimum balance
in the Debt Service Reserve Account of the
Sinking Fund or may be transferred to the
Operation and Maintenance Fund to meet
unforeseen contingencies in the operation and
maintenance of the Waterworks.
(e) Investment of Funds. The Sinking
Fund shall be deposited in and maintained as
a separate bank account or accounts from all
other bank accounts of the City. The
Operation and Maintenance Fund and the
Waterworks Improvement Fund may be maintained
in a single bank account, or accounts, but
such bank account, or accounts, shall likewise
be maintained separate and apart from all
other bank accounts of the City and apart from
the Sinking Fund bank account or accounts.
All moneys deposited in the bank accounts
shall be deposited, held and secured as public
funds in accordance with the public depository
laws of the State of Indiana; provided, that
moneys therein may be invested in obligations
in accordance with the applicable laws,
including particularly Indiana Code, Title 5,
Article 13, Chapter 9, as amended or
supplemented, and in the event of such
investment the income therefrom shall become
a part of the funds invested and shall be used
only as provided in this ordinance.
Section 25. Rates and Charges. The estimate
of the rates and charges which will be needed and charged
to the general classes of users or property to be served
by the Waterworks in order to provide sufficient moneys
to make payments of principal of and interest on the
Bonds and other bonds which by their terms are payable
15
from the revenues of the Waterworks, as described herein,
along with the other payments identified in this
Ordinance, is set forth in Ordinance No. 8305-92 entitled
"AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND ESTABLISHING A NEW SCHEDULE OF RATES AND CHARGES FOR
SERVICES RENDERED BY THE CITY OF SOUTH BEND WATER WORKS
AND THE AMENDING OF CHAPTER 17, ARTICLE 4, SECTIONS 17-
45, 17-46, 17-47, 17-48 OF THE SOUTH BEND MUNICIPAL CODE"
adopted by the Common Council on October 12, 1992, as
amended by Ordinance No. 8357-93 entitled "AN ORDINANCE
OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND
ESTABLISHING A NEW SCHEDULE OF RATES AND CHARGES FOR
SERVICES RENDERED BY THE CITY OF SOUTH BEND WATER WORKS
AND THE AMENDING OF CHAPTER 17, ARTICLE 4, SECTIONS 17-
45, 17-46, 17-47, 17-48 OF THE SOUTH BEND MUNICIPAL CODE"
adopted by the Common Council on February 22, 1993 .
Section 2. Validity of Remaining Provisions. All
remaining terms and conditions of the Bond Ordinance not amended
herein remain in full force and effect.
Section 3. Effective Date. This Ordinance shall be in
full force and effect from and after its passage and approval by
the Common Council and signing by the Mayor.
COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA
By:
Member of tYie Common Council
ErFP"OtiTy Trruefi'liTir-
. opportunity for public discussion
rrrompola\sthbend\waterwor.ks\amending.ord;drf;9-7-93
Filed in Clerk's Office
/�
1st READING 9-49`,��5
PUBLIC HEARING 9-o?7-93
3rd READING p g7 7_ 43
NOT APPROVED 16
REFERRED IRENE GAMMON
PASSED CITY CLERK,SO.BEND,IN.
APPENDIX A
TO THE BOND ORDINANCE
FORM OF REGISTERED BOND
(Form of Face of Bond)
UNITED STATES OF AMERICA
STATE OF INDIANA, COUNTY OF ST. JOSEPH
CITY OF SOUTH BEND, INDIANA,
WATERWORKS REVENUE BOND OF 1993
No. 93R-
Interest Maturity Original Authentication
Rate Date Date Date CUSIP
1, _ 1, 1993
Registered Owner:
Principal Amount:
The City of South Bend (the "City") , in St. Joseph
County, State of Indiana, for value received, hereby promises to
pay to the Registered Owner specified above, or registered assigns,
upon surrender hereof, solely out of the special revenue fund
hereinafter referred to, the Principal Amount stated above on the
Maturity Date specified above (unless this bond be subject to and
shall have been called for redemption prior to maturity as
hereinafter provided) , and to pay interest hereon until the
Principal Amount is fully paid at the Interest Rate per annum
specified above from the interest payment date to which interest
has been paid next preceding the Authentication Date of this bond
unless this bond is authenticated after the fifteenth day of the
month preceding an interest payment date and on or before such
interest payment date, in which case it shall bear interest from
such interest payment date, or unless this bond is authenticated
on or before December 15, 1993, in which case it shall bear
interest from the Original Date, which interest is payable
semiannually on January 1 and July 1 of each year, commencing
January 1, 1994. Interest shall be calculated on the basis of
twelve (12) thirty-day months for a three hundred sixty-day year.
The principal of and premium, if any, on this bond is
payable at the principal corporate trust office of
, in the City of
•
, Indiana (the
"Registrar" and the "Paying Agent") . Interest hereon will be paid
by check or draft mailed or delivered by the Paying Agent to the
Registered Owner hereof at the address as it appears on the
registration books of the Registrar as of the fifteenth day of the
month immediately preceding the applicable interest payment date
or at such other address as is furnished to the Paying Agent in
writing by such Registered Owner. All payments on this bond shall
be made in any coin or currency of the United States of America
which, on the dates of such payments, shall be legal tender for the
payment of public and private debts.
This bond and the other bonds of this issue, together
with the interest payable hereon and thereon, are payable solely
from and secured by an irrevocable pledge of and constitute a first
charge upon all of the net revenues (defined to be gross revenues
after deduction only for the payment of the reasonable expenses of
operation, repair and maintenance) derived from the Waterworks of
the City, including the existing works, the improvements and
extensions acquired or constructed in part. out of the proceeds of
this bond and the issue of which it is a part, and all additions
and improvements thereto and replacements thereof subsequently
acquired or constructed. The City shall not be obligated to pay
the principal of or interest on this bond except from the special
fund, entitled the "Waterworks Sinking Fund" (heretofore created
by Ordinance No. 8318-92, adopted November 23, 1992, as amended by
Ordinance No. adopted , 1993 , each as described
hereinbelow) , provided from the net revenues of such Waterworks,
and neither this bond nor any of the bonds of the issue of which
this bond is a part shall constitute an indebtedness of the City
within the meaning of the provisions and limitations of the
constitution of the State of Indiana.
The City, the Registrar and the Paying Agent may deem and
treat the Registered Owner hereof as the absolute owner hereof for
the purpose of receiving payment of or on account of principal
hereof and the interest due hereon and for all other purposes, and
none of the City, the Registrar or the Paying Agent shall be
affected by any notice to the contrary.
This bond shall not be valid or become obligatory for any
purpose or entitled to any security or benefit under the Ordinance
herein described unless and until the certificate of authentication
hereon shall have been executed by a duly authorized representative
of the Registrar.
THE TERMS AND PROVISIONS OF THIS BOND ARE CONTINUED ON
THE REVERSE SIDE HEREOF AND SUCH TERMS AND PROVISIONS SHALL HAVE
THE SAME EFFECT ..FOR ALL PURPOSES AS THOUGH FULLY SET FORTH AT THIS
PLACE.
The City hereby certifies, recites and declares that
all acts, conditions and things required to be done precedent to
and in the preparation, execution, issuance and delivery of this
bond have been done and performed in regular and due form as
required by law.
-2-
•
IN WITNESS WHEREOF, the City of South Bend, in St. Joseph
County, State of Indiana, has caused this bond to be executed in
its corporate name by the manual or facsimile signature of its
Mayor, countersigned by the manual or facsimile signature of its
Controller and its corporate seal to be hereunto affixed, imprinted
or impressed by any means and attested by the manual or facsimile
signature of its' City Clerk.
CITY OF SOUTH BEND
By:
Mayor
Countersigned:
Controller
(Seal of the City)
ATTEST:
City Clerk
City of South Bend, Indiana
REGISTRAR'S CERTIFICATE OF AUTHENTICATION
This bond is one of the City of South Bend, Indiana,
Waterworks Revenue Bonds of 1993, described in the within-mentioned
Ordinance.
as Registrar
By:
Authorized Representative
(Form of Reverse Side of Bond)
This bond is one of an authorized issue of bonds of the
City of South Bend, Indiana, of like, tenor and effect, except as
to numbering, interest rates and date of maturity, in the total
amount of Five Million One Hundred Thousand and 00/100 Dollars
($5, 100,000.00) numbered from 93R-1 upward, issued for the purpose
of providing funds to pay the cost of certain improvements and
-3-
extensions to the waterworks of the City (the "Waterworks") and
all expenses necessarily incurred in connection with the issuance
of such bonds, as authorized by an ordinance adopted by the Common
Council of the City of South Bend, Indiana (the "Common Council")
on the 23rd day of November, 1992, entitled "AN ORDINANCE
AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS,
ADDITIONS AND IMPROVEMENTS TO THE MUNICIPAL WATERWORKS OF THE CITY
OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE AND SALE OF
REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS
THEREOF, AND AUTHORIZING THE COLLECTION, SEGREGATION AND
DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND OTHER RELATED
MATTERS" as amended by an ordinance adopted by the Common Council
on the day of September, 1993, entitled "AN ORDINANCE OF THE
COMMON COUNCIL =`vOF THE CITY OF SOUTH BEND, INDIANA, AMENDING
ORDINANCE NO. 8318-92 ENTITLED "AN ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO THE
MUNICIPAL WATERWORKS OF THE CITY OF SOUTH BEND, INDIANA,
AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO PROVIDE FOR THE COSTS
THEREOF, AND AUTHORIZING THE COLLECTION, SEGREGATION AND
DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND OTHER RELATED
MATTERS" (collectively, the "Ordinance") , and in strict compliance
with the provisions of Indiana Code, Title 8, Article 1. 5, and the
laws amendatory thereof and supplemental thereto (the "Act") .
This bond is issuable only in fully registered form in
the denomination of Five Thousand and 00/100 Dollars ($5, 000. 00)
or any integral multiple thereof not exceeding the aggregate
principal amount of the bonds of this issue maturing in any one
year.
Pursuant to the provisions of the Act and the Ordinance,
the principal of and interest on this bond and all other bonds of
this issue and any bonds hereafter issued on a parity therewith,
are equally and ratably secured by and constitute a first charge
upon and are payable solely from the Waterworks Sinking Fund to be
provided from the net revenues (herein defined as the gross
revenues after deduction only for the payment of the reasonable
expenses of operation, repair and maintenance) derived from the
Waterworks, including the existing works, the improvements and
extensions acquired or constructed in part out of the proceeds of
this bond and the issue of which it is a part, and all additions
and improvements thereto and replacements thereof subsequently
constructed and acquired. This bond does not and shall not
constitute an indebtedness of the City within the meaning of the
provisions and limitations of the constitution of the State of
Indiana, and the City is not and shall not be obligated to pay this
bond or the interest thereon except from such special fund provided
from such net revenues.
-4-
The City of South Bend irrevocably pledges the entire net
revenues of the Waterworks to the extent necessary for such
purposes, to the prompt payment of the principal of and interest
on the bonds authorized pursuant to the Ordinance, of which this
is one, and any bonds hereafter issued on a parity herewith. The
City covenants that it will to the fullest extent permitted by law
cause to be fixed, maintained and collected such rates and charges
for services rendered by such works as are sufficient in each year
to: (a) pay all legal and other necessary expenses incident to the
operation of the Waterworks, including maintenance costs, operating
charges, upkeep, repairs, depreciation, and interest charges on
bonds or other obligations, including leases; (b) make all required
deposits into the Waterworks Sinking Fund to provide for the
liquidation of bonds or other obligations, including leases; (c)
provide a debt service reserve for bonds or other obligations,
including leases, as required by the terms of such obligations; (d)
provide adequate money for working capital; (e) make all required
deposits into the Waterworks Improvement Fund to provide adequate
money for making extensions and replacements for the Waterworks;
and (f) provide money for the payment of any taxes that may be
assessed against the Waterworks.
The owner of this bond shall have all of the rights,
remedies and privileges provided in the Act, and under Indiana law,
including the making and collecting of reasonable and sufficient
rates lawfully established for the use of the services and
facilities of the Waterworks, the segregation of the revenues of
the Waterworks and the application of funds as provided in the
Ordinance.
The bonds of this issue maturing on or after January 1,
2004, are subject to redemption prior to maturity, at the option
of the City, in whole or in part, on January 1, 2003 , or at any
time thereafter, in inverse order of maturity and by lot within any
such maturity or maturities by the Registrar at a redemption price
expressed as a percentage of the principal amount of each bond to
be redeemed in accordance with the following schedule, plus accrued
interest to the date of redemption:
Redemption Period
(Both Dates Inclusive) Redemption Price
January 1, 2003 through December 31, 2003 102%
January 1, 2004 through December 31, 2004 101%
January 1, 2005 and thereafter prior to maturity 100%
Notice of any such redemption identifying the Bonds shall be sent
by registered or certified mail to the Registered Owner of this
bond not more than sixty (60) and not less than thirty (30) days
prior to the date fixed for redemption, unless such notice is
waived by the Registered Owner; provided, however, that failure to
give such notice by mailing, or any defect therein, with respect
-5-
to any such bond will not affect the validity of any proceedings
for redemption of any other such bonds. The notice shall specify
the redemption price, the date and place of redemption, and the
registration numbers (and in case of partial redemption, the
respective principal amounts) of the bonds called for redemption.
Interest on bonds so called for redemption shall cease to accrue
on the redemption date fixed in such notice, so long as sufficient
funds are available at the place of redemption to pay the
redemption price on the redemption date or when presented for
payment.
Prior to the date fixed for redemption, funds shall be
deposited with the Paying Agent to pay, and the Paying Agent is
hereby authorized and directed to apply such funds to the payment
of the bonds or portions thereof called, together with accrued
interest thereon to the redemption date and any required premium.
No payment shall be made by the Paying Agent upon any bond or
portion thereof called for redemption until such bond shall have
been delivered for payment or cancellation or the Registrar shall
have received the items required by the Ordinance with respect to
any mutilated, lost, stolen or destroyed bond.
If this bond shall have become due and payable in
accordance with its terms or this bond or a portion hereof shall
have been duly called for redemption or irrevocable instructions
to call this bond or a portion hereof for redemption shall be given
and the whole amount of the principal and the premium, if any, and
interest, so dutand payable upon this bond or such portion hereof
shall be paid, or (i) sufficient moneys, or (ii) direct obligations
of, or obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America, the
principal of and the interest on which when due will provide
sufficient moneys for such purpose, or (iii) time certificates of
deposit of a bank or banks, fully secured as to both principal and
interest by obligations of the kind described in (ii) above, the
principal of and interest on which when due will provide sufficient
moneys for such purpose, shall be held in trust for such purpose,
then and in that case this bond or such portion hereof shall no
longer be deemed outstanding, entitled to the pledge of the net
revenues of the Waterworks or an obligation of the City.
If this bond shall not be presented for payment or
redemption on the date fixed therefor, the City may deposit in
trust with the Paying Agent an amount sufficient to pay such bond
or the redemption price, as appropriate, and thereafter the
Registered Owner shall look only to the funds so deposited in trust
with the Paying Agent for payment, and the City shall have no
further obligation or liability with respect thereto.
-6-
All bonds which have been redeemed shall be cancelled and
cremated or otherwise destroyed and shall not be reissued and a
counterpart of the certificate of cremation or other destruction
evidencing such cremation or other destruction shall be furnished
by the Registrar to the City; provided, however, that one or more
new registered bonds shall be issued for the unredeemed portion of
any bond without charge to the holder thereof.
Subject to the provisions of the Ordinance regarding the
registration of such bonds, this bond and all other bonds of the
issue of which this bond is a part are fully negotiable instruments
under the laws of the State of Indiana. This bond is transferable
or exchangeable'bnly on the books of the City maintained for such
purpose at the principal office of the Registrar, by the Registered
Owner hereof in person, or by his attorney duly authorized in
writing, upon surrender of this bond together with a written
instrument of transfer or exchange satisfactory to the Registrar
duly executed by the Registered Owner or his attorney duly
authorized in writing, and thereupon a new fully registered bond
or bonds in the same aggregate principal amount and of the same
maturity shall be executed and delivered in the name of the
transferee or transferees or the Registered Owner, as the case may
be, in exchange therefor. This bond may be transferred or
exchanged without cost to the Registered Owner or his attorney duly
authorized in writing, except for any tax or other governmental
charge which may be required to be paid with respect to such
transfer or exchange. The Registrar shall not be obligated to make
any exchange or transfer of this bond (i) during the fifteen (15)
days immediately preceding an interest payment date on this bond
or (ii) after the mailing of any notice calling this bond for
redemption. The City, the Registrar and any Paying Agent for this
bond may treat and consider the person in whose name this bond is
registered as the absolute owner hereof for all purposes including
for the purpose of receiving payment of, or on account of, the
principal hereof' and the redemption premium, if any, and interest
due hereon.
In the event this bond is mutilated, lost, stolen or
destroyed, the City may cause to be executed and the Registrar may
authenticate a new bond of like date, maturity and denomination as
this bond, which new bond shall be marked in a manner to
distinguish it from this bond; provided, that in the case of this
bond being mutilated, this bond shall first be surrendered to the
Registrar, and in the case of this bond being lost, stolen or
destroyed, there shall first be furnished to the Registrar evidence
of such loss, theft or destruction satisfactory to the City and to
the Registrar, together with indemnity satisfactory to them. In
the event that this bond, being mutilated, lost, stolen or
destroyed, shall have matured or been called for redemption,
instead of causing to be issued a duplicate bond the Registrar may
pay this bond upon surrender of this mutilated bond or upon
satisfactory indemnity and proof of loss, theft or destruction in
-7-
the event this bond is lost, stolen or destroyed. In such event,
the City and the Registrar may charge the owner of this bond with
their reasonable fees and expenses in connection with the above.
Every substitute bond issued by reason of this bond being lost,
stolen or destroyed shall, with respect to this bond, constitute
a substitute contractual obligation of the City, whether or not
this bond, being lost, stolen or destroyed shall be found at any
time, and shall be entitled to all the benefits of the Ordinance,
equally and proportionately with any and all other bonds duly
issued thereunder.
The Registrar or Paying Agent may at any time resign as
registrar or paying agent by giving thirty (30) days' written
notice to the City and by first-class mail to the registered owners
of bonds then outstanding, and such resignation will take effect
at the end of such thirty (30) days or upon the earlier appointment
of a successor registrar or paying agent, as the case may be, by
the City. Such notice to the City may be served personally or be
sent by registered mail. The Registrar or Paying Agent may be
removed at any tfime as registrar or paying agent by the City, in
which event the City may appoint a successor registrar or paying
agent, as the case may be. The City shall notify the registered
owners of this bond, if then outstanding, by first-class mail of
the removal of the Registrar or Paying Agent. Notices to
registered owners of bonds shall be deemed to be given when mailed
by first-class mail to the addresses of such registered owners as
they appear in the registration books kept by the Registrar.
In the manner provided in the Ordinance, (a) without
notice to or consent of the owners of the Bonds authorized
thereunder, including this Bond, the City may, from time to time
and at any time, adopt a supplemental ordinance or ordinances for
specified purposes, and (b) the Ordinance and the rights and
obligations of the City and the owners of the bonds authorized
thereunder, including this bond, may (with certain exceptions as
stated in the Ordinance) be modified or amended with the consent
of the owners of at least sixty-six and two-thirds percent (66
2/3%) in aggregate principal amount of such bonds exclusive of any
such bonds which may be owned by the City.
The bonds authorized and issued pursuant to the
Ordinance, including this bond, are subject to defeasance prior to
redemption or payment as provided in the Ordinance, and the
Registered Owner of this bond, by the acceptance hereof, hereby
agrees to all the terms and provisions contained in the Ordinance.
The following abbreviations, when used in the inscription
on the face of the within Bond, shall be construed as though they
were written out in full according to applicable laws or
regulations.
-8-
• ,
•
TEN. COM. - as tenants in common
TEN. ENT. - as tenants by the entireties
JT. TEN. - as joint tenants with right of
survivorship and not as tenants in common
UNIF. GIFT MIN. ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in
the list above.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns
and transfers unto
(insert name and
address) the within bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to transfer the within bond on the
books kept for the registration thereof with full power of
substitution in the premises.
Dated:
NOTICE: The signature to this
assignment must correspond with the
name as it appears on the face of the
within bond in every particular,
without alteration or enlargement or
any change whatsoever.
Signature Guarantee:
NOTICE: Signature(s) must
be guaranteed by a broker-
dealer or a commercial bank
or trust company.
(End of Bond Form)
rrrompol\sthbend\waterwor.ks\bondform;drf;9-7-93
Filed in Clerk's Office
-9-
CC 8
IRENE GAMMON
CITY CLERK,SO.BEND,IN.
}
(iotnlntttn Sport
Mu tie (dmtuwn tilounril of tip Qlit3 of£+outs firm):
Your Committee
of the Whole
to whom was referred
BILL NO.
81-93 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 8318-92
ENTITLED "AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION AND
CONSTRUCTION OF EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO
THE MUNICIPAL WATERWORKS OF THE CITY OF SOUTH BEND,
INDIANA, AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO
PROVIDE FOR THE COSTS THEREOF, AND AUTHORIZING THE
COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES
OF SUCH WATERWORKS AND OTHER RELATED MATTERS".
• Respectfully report that they have examined the matter and that in their opinion
This bill has been recommended to the Council favorable.
Chairman
Thomas Zakrzewski
City of South Bend
Joseph E. Kernan, Mayor
. 1
, 865.�1.:'.
Department of Public Works
John E. Leszczynski, Director
September 8, 1993
South Bend Common Council
4th Floor County-City Building
South Bend, IN 46601
ATTN: Mr. Steve Luecke, President
Mr. Tom Zakrzrewski, Chairman Utilities Committee
RE: Amending Bond Ordinance
Dear Councilmen:
Attached for filing please find an Amending Bond Ordinance which
amends Ordinance No. 8318-92 entitiled An Ordinance of the Common
Council of the City of South Bend, Indiana, Authorizing the
Acqusition and Construction of Extensions, Additions, and
Improvements to the Municipal Waterworks of the City of South
Bend, Indiana, Authorizing the Issuance of Revenue Bonds to
Provide for the Costs Thereof, and Authorizing the Collection,
Segregation and Distribution of the Revenues of Such Waterworks
and Other Related Matters (Bond Ordinance) . "
Please note that the Amending Ordinance amends Section two of the
Bond Ordinance so that it now includes a list of the Projects to
be funded with the Bond proceeds . Section four of the Bond
Ordinance is amended to include various provisions such as the
affixing of a maximum interest rate which is set at 8% . Section
7 of the Bond Ordinance is amended to permit optional redemption
on January 1, 2003, and to permit the successful bidder for the
Bonds to aggregate all or some of the Bonds into Term Bonds which
require less bond certificates .
Further, please note that Section nine of the Bond Ordinance is
amended to refer to a bond which has current date information
regarding payment of the Bonds . Section ten of the Bond
Ordinance is amended to provide information regarding the public
sale of the Bonds . Section fourteen (14) of the Bond Ordinance
is amended to indicate that the Debt Service Reserve will be
funded with proceeds of the Bonds. Section fifteen (15) of the
County-City Building • South Bend, Indiana 46601 • 219/284-9251
Engineering Environmental Services Equipment Services Transportation Water Works
Michael Meeks, P.E. John J. Dillon, Ph. D. Phil St. Clair Bill Penn Joseph Agostino
284-9251 277-8515 284-9316 284-9444 284-9322
FAX (219) 284-9171 FAX (219) 277-8980 FAX (219) 284-9007 FAX (219) 284-9007
Bond Ordinance is likewise amended to reflect that the Debt
Service Reserve will be funded out of proceeds of the Bonds .
Finally, Section twenty-five (25) of the Bond Ordinance is
amended to identify the actions taken by the Common Council
regarding the rates charged to the users of the Waterworks .
This is an overview of the changes found in the Amended Bond
Ordinance. All affected Sections are referenced.
Your favorable consideration is requested.
Sincerel
9125
hn E. Leszczynski
Director, Public Works